Mr. Cameron MacDonald reports

AURWEST RESOURCES ANNOUNCES EXECUTION OF DEFINITIVE AGREEMENT ON WEAVER LAKE GOLD PROJECT

Aurwest Resources Corp. has entered into a definitive option and joint venture agreement with Pacific Bay Minerals Ltd., whereby Aurwest has acquired an option to earn, subject to the satisfaction of conditions, an undivided interest of up to 50 per cent in the Weaver gold/silver property in British Columbia.

Transaction summary

Pursuant to the terms of the definitive agreement, Pacific Bay is appointed as the operator of the project in consideration of payments, issuance of common shares of the company and exploration work. The company may earn up to a 50-per-cent undivided interest in the Weaver project up each of the yearly anniversaries of the signature of the definitive agreement during a three-year period following the entering into the transaction. Such payments and Aurwest common shares issuances are allocated as follows (in each case subject to and in accordance with the rules and policies of the Canadian Securities Exchange):

• Upon signing of this agreement, $10,000 and 500,000 shares of Aurwest (completed);
• Upon receipt of regulatory approval, payment to Pacific Bay Minerals of $20,000 worth of common shares of Aurwest based on the 20-day volume-weighted average price (VWAP) of Aurwest;
• On or before the first anniversary of the LOI (letter of intent): $15,000 cash, $25,000 worth of Aurwest shares based on the VWAP and $75,000 in exploration work on the property;
• On or before the second anniversary of the LOI: $20,000 cash, $75,000 worth of Aurwest shares based on the VWAP and an additional $100,000 in exploration work on the property;
• On or before the third anniversary of the LOI: $25,000 cash and $75,000 worth of Aurwest shares based on the VWAP and an additional $150,000 in exploration work on the property.

The agreement also contemplates the following:

• Automatic joint venture formation upon option exercise: Upon Aurwest satisfying all option payments and work commitments, the parties will automatically form a 50/50 joint venture, with Pacific Bay Minerals acting as the initial operator and a two-member management committee governing major decisions.
• Existing 3-per-cent NSR (net smelter return) royalty with buydown rights: The property is subject to a 3.0-per-cent NSR royalty in favour of David Schussler. Pacific Bay retains the right to purchase up to 2 per cent of that royalty at $1.5-million per 1-per-cent increment and holds a right of first refusal on the remaining 1 per cent.
• Dilution mechanics and minimum interest threshold: If either joint venture partner fails to finance its share of approved programs postformation, its interest will be diluted proportionally. A partner whose interest falls to 15 per cent or below is automatically converted to a 2-per-cent NSR royalty, with the other party holding a buyout option on that royalty for $2-million.
• Governance and transfer restrictions: Major decisions -- including asset dispositions or borrowings exceeding $2-million and litigation settlements above $500,000 -- require unanimous management committee approval. Neither party may transfer its interest without first offering a right of first refusal to the other, and any transferee must assume all obligations under the agreement.

Weaver gold project

Located in southwestern British Columbia's prolific East Harrison Lake belt, the property hosts strong potential for orogenic gold-silver mineralization hosted in structurally controlled quartz-carbonate vein systems, with historical exploration yielding impressive high-grade results, including up to 63.77 grams per tonne gold and 2,009.44 grams per tonne silver from trench sampling, and multiple drill intercepts with multigram gold and silver over metre-scale widths.

Situated near excellent infrastructure with year-round access through paved highways and forestry roads, the 725-hectare property also offers secondary upside for magmatic nickel-copper sulphide mineralization, drawing parallels to the nearby Pacific Nickel (Giant Mascot) mine. The Whitehead report concludes that Weaver Lake is a property of merit warranting continued exploration, supported by its favourable geological setting, confirmed mineralization continuity, and untapped potential along strike and at depth.

"The Weaver gold project represents and exciting opportunity for Aurwest to get into the gold exploration sector in B.C.," said Aurwest chief executive officer Cameron MacDonald. "We're looking forward to getting to work on this high-potential project."

Qualified person

The scientific and technical information contained herein has been reviewed and approved by David Bridge, PGeo, an independent technical adviser to the company, who is a qualified person as defined in National Instrument 43-101, Standards of Disclosure of Mineral Projects.

About Aurwest Resources Corp.

Aurwest is a Canadian-based junior resource company focused on the acquisition, exploration and development of gold properties in Canada.

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